First-quarter net income climbed 7.1 percent to NT$5.7
billion ($200 million) from NT$5.3 billion a year earlier, the
Taoyuan, Taiwan-based company said in a statement today. Profit
surpassed the NT$4.6 billion average of 10 analysts’ estimates
compiled by Bloomberg.

Share of revenue from products such as tablet computers and
servers is expected to climb to 30 percent this year from 20
percent last year, Vice Chairman and President C.C. Leung said
at a press conference today. Quanta began making tablets in 2010
and shipments of the devices are expected to climb this year,
Leung said, without giving a figure or naming customers.

Sales fell 0.4 from a year earlier to NT$251.6 billion, the
first decline in seven quarters. Shipments dropped 9 percent
from the prior three-month period, the largest quarter-on-quarter decline in two years.

Investment Gains

First-quarter profit was boosted by investment gains, with
non-operating income more than doubling from a year earlier to
NT$3.8 billion, Quanta said. The main contributors to the jump
were a foreign-exchange gain of NT$1.57 billion and a disposal
of investments that earned NT$1.17 billion, the company said.

Quanta climbed 2.3 percent to NT$57.80 at the 1:30 p.m.
close of trading in Taipei before the earnings announcement. The
stock has declined 5.6 percent this year compared with a 0.3
percent drop in the benchmark Taiex Index.

Fourth-quarter net income, also reported today, was NT$2.3
billion. That compares with the NT$5.2 billion average of 10
analysts’ estimates. Quanta posted non-operating and foreign
exchange gains during the fourth quarter of 2009.

Quanta will begin test production of notebooks in
Chongqing, China this month, said Tim Li, a senior vice
president.